ONDO Price Slumps to Multi-Month Low With No Signs of a Bullish Reversal Yet

Key Takeaways

• ONDO’s price faces stiff resistance, with a sell-wall positioned between $1.10 and $1.27.
• The daily chart shows that the altcoin is oversold, but bears have remained in control.
• With increasing downward momentum, ONDO’s market value will likely drop below $1.

Like most altcoins in the market, Ondo’s (ONDO) price has been struggling all month. On Feb. 1, ONDO’s price was $1.56.

The token reached this value after rebounding from the selling pressure it faced since rallying above $2 in December.

Today, the token’s value is $1.08, but several indicators show it could fall below this key threshold. Market observers will want to know whether this decline is likely.

In this analysis, CCN reveals what is left of ONDO’s price action and what could be next for the cryptocurrency.

ONDO Faces Persistent Troubles

From an on-chain standpoint, the In/Out of Money Around Price (IOMAP) shows a higher volume of tokens in unrealized losses than profits.

When there is more volume in profits, the IOMAP indicates support. But when there is more volume in losses, it indicates resistance.

According to IntoTheBlock, ONDO’s price faces resistance from $1.10 to $1.27. At each of these price levels, addresses are holding more volume in unrealized losses.

For instance, between $1.10 and $1.13, over 4,000 ONDO addresses purchased 51 million tokens. At the $1.20 to $1.23 level, about 4,600 addresses hold 162 million tokens at a loss.

Thus, as ONDO’s price moves closer to this point, it will likely face intense selling pressure. This expected sell pressure might push the price back and drive the token below $1.

ONDO Price to Collapse Below $1

Looking at it from a technical angle, the daily chart shows that the Relative Strength Index (RSI) reading has fallen. When the RSI rises, the momentum is bullish.

Conversely, if the RSI declines, the momentum is bearish. The indicator also shows when an asset is overbought or oversold.

Readings below 30 mean it is oversold, while those above 70 mean it is overbought. As of this writing, this RSI reading is close to the oversold point.

However, the Bull Bear Power (BBP) reading signifies that ONDO’s price might not experience a quick rebound nonetheless,

The BBP compares bulls’ and bears’ strength. Currently, that reading is in the negative region, indicating that bears are in control.

If this remains the same, ONDO might drop to the 0.236 Fibonacci retracement at $0.89. However, if buying pressure remains mute at this point, the token could decline to $0.50.

On the other hand, if the cryptocurrency bounced off the $0.89 support or failed to break down below $1, this trend might be different. In that scenario, the token’s value might rally to $1.52.